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Bonds Are a 'Safe' Investment: A Big Lie Gets Even BiggerJokes aside, nobody told the airlines there'd be days like these, to paraphrase John Lennon.
Jet fuel costs -- up 84% in the past year alone -- have skyrocketed, along with the cost of just about every other product derived from the world's most vital commodity, and the airlines are looking for every conceivable way to reduce weight, reduce wind/resistance drag, and increase operational efficiency, The New York Times reported Wednesday.
The major carriers are replacing heavier seats with lighter ones, cleaning engines and planes more often, reducing the fresh water available on flights, and plugging into electric outlets instead of idling engines at the gate, among other changes, in order to cut fuel consumption.
More air travel changes ahead
Moreover, the changes -- and charges -- have only just begun, so says stock analyst C. Leonard Bauer. "Everyone knows about the added bag charges, a pain in the neck, for sure. But it could get worse," says Bauer, who also flies on a major carrier about 5-7 times per year. "In the winter you could see a per pound baggage charge, or something along those lines. So don't pack that extra winter coat when you fly this December."
To be sure, weight is no laughing matter, for the airlines, Bauer said. Weight may very well determine which carriers survive the current oil shock. "Reduction in weight can mean the difference between a flight that turns a $20,000 profit or loses $30,000," Bauer said. "Add that up over thousands of flights and you begin to grasp the airline's perspective." Bauer added that he does not have a rating on nor own shares in any airline.
Another likely sector-wide change, according to Bauer, could be slower flying speeds, which means longer travel times between points. "The practice has already started, and it has to occur, at least until airlines can phase-in new planes, which are more fuel efficient," Bauer said. "The airlines will determine the optimum speed per plane and flight, then see how close they can come to it, and still comply with safety and schedule requirements."
Of course, none of the above applies, Bauer said, if oil drifts back towards saner price levels.
"Oil and sane price levels?" Bauer added. "That's an oxymoron."
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Reader Comments (Page 1 of 1)
6-12-2008 @ 1:23AM
Uncle Al said...
Instead of hair brained schemes to increase revenue, why don't the airlines make it simple.
A base fare for all flights in all levels (economy, business, and first class).
A sliding schedule for fuel surcharges based on price of aviation fuel.
Consumers will accept added costs if based on such a basis as this.
6-12-2008 @ 4:46AM
gary sartor said...
I think thee airlines are going to start to do very well because just think it cost about six hundred dollars to drive a car from california to newyork and that is oneway. now an airline would charge you less then that amount and that is round trip. and just think you would even have money left over to take a taxi from the airport to where you need to go. you woud even have enought money left over to stay at a nice hotel. oh yea you are going to start seeing some crazy looking people on your flights as well. because the airlines are going to give greyhound bus lines a run for there money. its going to be crazy fun up there in the air because a lot of thoses X greyhound bus riders are allready flying because they are as high as a kite. have fun, peace out. happy happy black and nappy and back to back black and nappy.
6-12-2008 @ 5:56AM
harry said...
if weight is a prime factor in fuel usage, why stop at just weighing luggage. base the price of the ticket to what you weigh....